Trade With China & Its Impact on Economic Growth of Pakistan

The objective of this research paper is to analyze trade with China and its impact on Economic growth of Pakistan. We used time series secondary data for the period 1976-2014 and applied ARDL approach to analyze it. We also used graphs to show the results that show that Pakistan's economy is improving in zig zag way. We conclude that trade openness is not a zero sum game means its benefits are not equalized but more than its shortcomings like trade openness dependency on foreign countries increases and sometimes balance of trade goes in deficit. But it causes a win-win situation, both countries get more benefits than the risks involved in trade but the condition is that both countries should have suitable strategy and bilateral trade.